Redcliffe Partners' programme of PowerLab events continued on 27 November 2019 with a meeting dedicated to "Taxation 2020. Global trends, Ukrainian realities and expectations: how to prepare your business".

Within the framework of this event, Yevhen Kozlov, Adviser to the Minister of Finance, Reform Support Team, spoke on the key tax developments in cross-border transaction taxation. Yevhen spoke about the latest amendments to the double taxation conventions, in particular with Cyprus, and defined basic changes reflected in the new updated draft law 1210-Д, which is likely to be considered by the Verkhovna Rada in the near future. Regarding the automatic tax information exchange, this will first take place in 2021 (for 2020) based on the "optimistic forecast", subject to timely approval of the required legislative amendments and execution of a multilateral tax information exchange agreement.

Marco Compagnino, Partner at CM Legal, in association with Mercanti e Associati, Lugano (Switzerland), discussed the new Italian tax regime for high net worth individuals: a solution for business purposes, change of tax residence, management of any business, assets or private assets owned in Switzerland and abroad. By paying a fixed sum of EUR 100,000 annually from any of its worldwide income to the Italian tax office, a "new" Italian tax resident gets almost all of the advantages provided by the Italian laws, i.e. the tax exemption on income and wealth sourced abroad, and no reporting obligations on foreign assets. A person using this regime can transfer their family to Italy on advantageous terms.

Yaroslav Guseynov, Head of Tax at Metinvest, reported on building an up-to-date tax function in one of the Ukraine's largest holding companies. According to Yaroslav, transparent business structuring offers great advantages and, given global trends, it should be built today.

Anna Pushkaryova, Senior Associate at Redcliffe Partners, spoke on the latest trends in foreign business structuring and asset protection in the 'new' world of transparency. Considering the global approach aimed at disclosing a person's income, tax transparency, requirements of "substance" in the country of incorporation and income taxation at the actual place of business, the gradual abandonment by EU states of banking secrecy, as well as the availability of public information on the beneficiaries of companies and trusts, a scrupulous approach should be applied to foreign business structuring and asset protection, and non-tax grounds should be key to the establishment and existence of structures in order to mitigate the relevant risks.

We are grateful to all participants for their attendance and thought-provoking talks.  Redcliffe Partners hope to see you soon at future events.